Microsoft job cuts mean up to 3,000 staffers will be laid off
There are more job losses to come at Microsoft as it is looking to cut up to 3,000 sales employees of its 121,000-employee workforce. The figure amounts to 10 percent of the sales division and about three quarters of the layoffs will take place outside the United States.
A company spokesperson told CNBC:
Today, we are taking steps to notify some employees that their jobs are under consideration or that their positions will be eliminated. Like all companies, we evaluate our business on a regular basis. This can result in increased investment in some places and, from time-to-time, re-deployment in others.
Windows Central reported on an internal memo and sources have circulated around a reorganization in the sales department down to an enterprise unit and one for mid-size and smaller businesses.
Microsoft is looking to focus development on specialist salespeople in different verticals and insists that this move is not a cost-cutting measure — another bad sign for frontline and call center employees and a worse sign for consumer PCs and phones. The tech giant saw a 93 percent jump in revenues from its Azure cloud computing business as consumer-side computing sales stall. Its gaming unit has gone through modest growth.
Going through with the elimination process, Microsoft will have experienced a net loss of 10,000 positions from its peak of 128,000 in 2014.